Indian shares ended higher on Friday, recording their biggest weekly gain in more than three months, as additional stimulus from the European Central Bank helped offset disappointment about the Reserve Bank of India's decision to hold rates. The broader NSE index ended 0.18 percent higher at 8,261.75, and rose 2.16 percent for the week. The benchmark BSE index closed 0.20 percent higher at 26,747.18, gaining 1.97 percent for the week.
Both indexes posted their best weekly gain since the week ended September 2. Banks were among the leading gainers, despite the RBI's surprise rate move after it reversed an order that had forced lenders to surrender all their extra cash and place it under the cash reserve ratio. Global sentiment was also buoyed after Wall Street hit record highs on Thursday and after the ECB extended it asset-buying programme for a longer period than many analysts had expected, though it trimmed the size of its purchase.
Asian shares, however, edged down on Friday with MSCI's broadest index of Asia-Pacific shares outside Japan dipping 0.3 percent. "Yesterday, the markets captured the announcement that was expected from the ECB, which has now decided to continue with its stimulus package," said Saurabh Jain, assistant vice-president of research at SMC Global Securities. Some banks rose on Friday with the Nifty Bank index up 1.6 percent this week. State Bank of India rose 1.5 percent, and was up 3.82 percent for the week.
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